TVH Global, "Regarding Rumors of Withdrawal from China Business, Reconsidering Sale of TBH HK" Reannouncement

[Asia Economy Reporter Oh Ju-yeon] TBH Global announced on the 21st in a re-disclosure regarding the report on withdrawing from the Chinese business on June 24 last year, stating, "The company currently has no plans to proceed with the sale of TBH HONG KONG LIMITED. We will focus on completing the restructuring and improving the performance of Baekgaho (Shanghai) Market Co., Ltd., a subsidiary of TBH HK, and then reconsider the sale in the future."

TBH Global explained that TBH HK, in which it holds 100% equity, had been reviewing various options such as selling TBH HK’s shares and brands within China to repay the convertible bonds issued on December 3, 2018, with a maturity date of December 3, 2019.

However, TBH Global judged that it was difficult to properly recognize the value of TBH HK at this time, as Baekgaho (Shanghai) Market Co., Ltd., a subsidiary located in China, underwent restructuring in 2019 to address inefficient distribution channels and inventory clearance. Accordingly, on December 2, 2019, TBH HK and the bondholders of the convertible bonds decided to extend the maturity of the bonds to December 31, 2021.